Thinking about selling your home?
You may have heard that home sales in the Twin Cities dropped 12% in January. As a potential seller that may give you cause for concern. However, if you take a closer look at the market, you’ll find that this is actually good news.
The reason for the drop in sales is simple. A report released by the Minneapolis Area Realtors and Saint Paul Area Association of Realtors shows that the supply of homes for sale is at an historic low; and the number of new listings is at its lowest point in 15 years.
There are currently 4,221 homes for sale in the area— ”a decades-long low” according to the report, which goes on to say that, based on current demand, the Twin Cities has about a three weeks’ supply of homes for sale—a number that is well short of the six months’ worth of inventory needed for a “balanced” market. Even new construction is feeling the pinch. With supply chain uncertainties, new construction sales were down 6.5% as well.
That means based on home prices, inventory, and demand, it’s a seller’s market and now might be the perfect time to sell your home.
Strong demand and lower inventory are causing home prices to rise.
Fewer homes on the market may mean that your house could sell faster and for more than the asking price. Since the beginning of 2021, metro-wide inventory is down 24.2%. However, the median sale price is up 10.4%--with median home prices hitting a record high for January of $332,250.
Low interest rates.
Right now, mortgage interest rates are low, which is also driving the market. Lower interest rates mean lower monthly payments which may mean buyers are willing to spend more to get the home they want—and that could increase the value of your home. Additionally, as interest rates are expected to rise this spring, buyers are on the look out to take advantage of the current rates—despite the low number of houses on the market.
A perfect storm for senior living.
For older adults who have been on the fence about moving to apartment-style living, this may be the motivation they need to sell the family home and simplify their lives. The money made from a home sale, depending on its value, can last many years as far as monthly rental payments, without having to tap into savings or investments. Plus, there are typically no utility fees, maintenance costs, or property taxes to pay! Be sure to talk with your financial advisor, but don’t wait too long – this market will change soon – and senior living properties are filling up quickly.
Interested in learning more?
Give us a call to talk about your options and take a tour of our brand new, beautifully designed community exclusively for active adults. Enjoy modern living with country charm, close to the St. Croix River Valley as well as St. Paul. Choose from a variety of apartment layouts with the comforts and convenience you deserve. 651-770-4443